Are securities that provide for a sinking fund more or less risky from the bondholder’sperspective than those without this type of provision? Explain.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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Are securities that provide for a sinking fund more or less risky from the bondholder’s
perspective than those without this type of provision? Explain.

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